John Deere plans to phase out Ottumwa, Clarion factories 

John Deere factories in Ottumwa and Clarion are set to be phased out over next two fiscal years as the company looks to “optimize” manufacturing and “improve operational efficiency” according to a Wednesday announcement from the company. 

The company also plans to move small planter production from a facility in Moline, Illinois, to a John Deere production facility in Paton, Iowa, in the next fiscal year. 

A spokesperson with the company said Wednesday that at “normal production volumes” approximately 300 people would be impacted by closures, though he said Deere is currently operating “far below normal production volumes due to the downturn in the ag economy.” 

“Specific employment impacts will depend on future business conditions, production volumes, and staffing needs,” Dustin Lemmon, the spokesperson, said. 

A news release from the company said it “continually evaluates its manufacturing footprint” as technology, customers and markets evolve. 

“That work includes streamlining operations, expanding capacity where it creates the most value, advancing automation and modern manufacturing technologies, and leveraging strategic sourcing to improve flexibility and cost competitiveness,” the news release said. 

As part of that evaluation, the company has decided to relocate windrower and round baler production from Ottumwa Works to the Des Moines Works facility. Windrow production is expected to transition by the end of fiscal year 2027 and round baler production by the end of fiscal year 2028, when Deere also plans to close the Ottumwa factory.  

Deere laid off workers from facilities across the state, including at the Ottumwa facility, in 2025 but at the end of October, the company announced that “all employees previously on layoff in Waterloo, the Quad Cities, Ottumwa, and Dubuque” had been asked to return to work. 

The City of Ottumwa said in a Facebook post Wednesday that the decision was “not something anyone in Ottumwa wants.” The city estimated closing the Ottumwa plant would have a payroll loss of more than $30 million.

“John Deere has been part of Ottumwa and a piece of our identity for a long time,” the social media post read. “We want to thank John Deere for the investment they have made in Ottumwa for so long. We appreciate all that they have done for our community and for the commitment they are making in helping Ottumwa through this transition and in locating a future company to Ottumwa.”

The social media post from the city also said the John Deere Foundation has “affirmed” its commitment of nearly $1 million to support Ottumwa and Clarion over the next three years.

Deere to end production in Clarion

The production of Hagie STS sprayers at the Hagie Manufacturing plant in Clarion will move to a Deere factory in Thibodaux, Louisiana. 

According to Hagie’s website, Deere acquired ownership of the Iowa-founded company in 2020. Hagie started making personnel carriers and self-propelled sprayers in the mid 1940s. 

The news release from Deere said it plans to end manufacturing operations at the Hagie factory in Clarion by fiscal year 2029. 

In addition to the changes in Iowa, Deere said it will move production of sugar cane harvesters from its plant in Thibodaux, Louisiana, to a facility in Catalão, Brazil. Deere said the move puts production of the machinery “closer to the largest concentration of customer demand.” According to the news release, the Louisiana facility manufactured around 35 sugar cane harvesters annually for market in the U.S.

Lemmon said affected employees at the Deere facilities will receive “timely information as plans are finalized.” 

“Deere will provide comprehensive transition support for employees at impacted facilities, which may include internal transfer opportunities, retraining assistance, retention offers, relocation assistance, severance benefits, and career-transition support,” the spokesperson said.